WELCOME e GAINS Participants Transitioning to e GAINS

WELCOME e. GAINS Participants Transitioning to e. GAINS Information Sessions

Hosts: Futures Industry Association (FIA) Clearing Corporation (CCorp) Markit Group Participants: e. GAINS Users (London, New York, Chicago)

Presentation Schedule (via Web. Ex) 3: 30 – 4: 30 p. m. (London time) I. Agreements: Transition EGUS to e. GAINS (Thursday, April 3; Tuesday, April 8) II. Trade Processing: Trade Flow, Layout, Reports (Thursday, April 10; Tuesday, April 15) III. Banking: Billing Cycle and Money Flow (Thursday, April 17; Tuesday, April 22) IV. Iterations: Implementation Feedback and Enhancements (Thursday, May 1) On-Site Training Schedule – London Tuesday, June 10: 00 a. m. , 2: 00 p. m. , Canary Wharf (TBD) Wednesday, June 11: 2: 00 p. m. , 3: 45 p. m. , The Brewery, Chiswell Street Thursday, June 12: 10: 00 a. m. , 2: 00 p. m. , JP Morgan, 125 London Wall

I. Agreements Purpose Transition and Validate EGUS Agreements and Rates to e. GAINS Fundamental Issue/Question How does EGUS talk to e. GAINS? Agenda Thursday, April 3 Tuesday, April 8 3: 30 – 4: 30 p. m. (London time) • EGUS/e. GAINS Agreement and Rate Uploads (FIA) o Electronic o Manual o Participant Set-up o Rate Verification o One-to-One Link: Agreement/Account #/Rate • e. GAINS Overview (FIA, Markit) o Role of Systems Providers o Participating Exchanges o Settlement Currency o System Access o Exhibit Review • Data Mapping (CCorp) • Learning Environment Access (CCorp) • Testing Module (CCorp) o Trade Load § Auto Upload § Manual o Individualized • Testing: Phases 1 -3 (CCorp) • Resource Links • Contacts II. Trade Processing Purpose Examine Exchange Trade Flow, Data Layout and Position Posting and Report Generation Fundamental Issue/Question How can I validate my trade data? Agenda Thursday, April 10 Tuesday, April 15 3: 30 – 4: 30 p. m. (London time) • Exchange Trade Flow and System Requirements (CCorp) o Overview: How does e. GAINS work o Trade Mapping § Exchange Codes § Product Codes § Platform § Transaction Source Codes o Deadlines (Agreement Changes and Maintenance) • Record Layout–Output Review (CCorp) o Detailed Character Layout • Month-End Cycle (FIA) • Trade Processing (FIA) o Rates o Position Reconciliation o Pay/Collect Reconciliation • Outputs: Reports, T+1 and Month-end (CCorp) o Confirmation / Change Processing o On-line o Data Files and Downloads • Resource Links • Contacts III. Banking Purpose Review Billing Cycle, Money Flow, and Month-End Adjustments Fundamental Issue/Question How are pay/collects managed? Agenda Thursday, April 17 Tuesday, April 22 3: 30 – 4: 30 p. m. (London time) • Participant Banking Instructions and Maintenance (FIA) • JP Morgan Global ACH Overview and System Functionality (FIA) o What is ACH? o Confirmation of Banking Instructions (mechanics, procedures, and deadlines) • Month-End Processing Deadlines (FIA) • Third Party Billing (FIA and CCorp) • Managing Accruals (FIA) • Reports (CCorp) • Systems Testing (CCorp) • Participating Firm Summary (Banking) To. Do List • Resource Links • Contacts IV. Next Iteration Purpose Provide Update(s) and Solicit Feedback Fundamental Issue/Question What is the next step? Agenda Thursday, May 1 3: 30 – 4: 30 p. m. (London time) • To-Dos Checklists • UPDATE: Third Party Relationship o Front-End (Participant Set Up) o Back-End • FEEDBACK: A Formal Checkpoint o Agreement, Statement of Intent, Banking Instructions o Trade Processing o Banking o Testing o Systems o Launch • FUTURE: Industry Enhancements o. FPS Launch (banking) (FIA) o. Participant Wish List (Participants) o. Procedure for adding (new) FX Settlements (FIA) o. Other Exchange Participants (FIA) o. Reducing the Credit Window (FIA) • Resource Links • Help Desk • Contacts

• To-Dos Checklists • UPDATE: Third Party Relationship o Front-End (Participant Set Up) o Back-End • FEEDBACK: A Formal Checkpoint o Agreement, Statement of Intent, Banking Instructions o Trade Processing o Banking o Testing o Systems o Launch • FUTURE: Industry Enhancements o FPS Launch (banking) (FIA) o Participant Wish List (Participants) o Procedure for adding (new) FX Settlements (FIA) o Other Exchange Participants (FIA) o Reducing the Credit Window (FIA) • Resource Links • Help Desk • Contacts FIA Tech Users / Participating Firms FIA Tech and Users / Participating Firms

Session 4. Next Iteration Purpose Provide updates since last Session(s) and solicit participant feedback. Fundamental Issue/Question Now what? From a participating firm’s perspective, what do I need to do for the e. GAINS launch?

Session 4. Next Iteration Agenda • To Dos – Participant Checklist (FIA) • Third Party Relationship o Front-End (Participant Set Up) o Back-End • Feedback – A Formal Checkpoint (User Feedback) o Agreements o Trade Processing o Banking o Testing o Systems o Launch

Session 4. Next Iteration Agenda Continued • Industry Updates o Faster Payments Services (FPS) • Reports (CCorp) • Systems Testing (CCorp) • Participating Firm Summary (Banking) To-Do List • Resource Links • Help Desk • Contacts

Processing Overview Eurex ICE Liffe Debtor Bank Markit e. GAINS EGUS Member Firm JPMorgan Chase Creditor Bank

Firm Checklist q q q q File e-GAINS Processing Agreement with FIA Tech Complete Statement of Intent Provide FIA Tech with the e. GAINS test coordinator Provide detailed banking instructions to FIA Tech Add to EGUS Admin (Search Institution and Parties, Maintain Parties) Exchange and Firm Codes Enable EGUS for auto rate load (EGUS: Maintain Party Permissions, Enable Rate Data Feed) File 3 rd Party Debit Authorization Form with bank(s) Forward completed copies of 3 rd Party Debit Authorization Forms to FIA Tech Request Learning Environment user ID and password Add rates, formerly maintained via pdf, into EGUS If you require an automated trade reconciliation tool, obtain CCorp’s layout specifications doc Script special test scenarios Test rates and sign-off on reports Test trades and sign-off on reports Test monies (direct and third party) and sign-off on reports

What Is On Our To-Do List? FIA q q q Finalize service provider negotiations and agreements Finalize web page links and resource docs (www. futuresindustry. org) Receive firm training liaison contact name, telephone number and email address Receive 3 rd Party Debit Authorization Form from all participants Obtain participant banking instructions and input detailed instructions into database Create e. GAINS participant IDs and grant access to e. GAINS QA and production systems Determine currency settlement offerings for launch Co-coordinate method–of-execution designator on trade record Test banking module Compile user guidelines, procedures, manuals, and related documents Facilitate user training in London (June 10 -12) Establish DR procedures

What Is On Our To-Do List? Continued CCorp q Link exchange and EGUS commodity/product and group codes q Review Exchange test and production (starting May 15) trade files q Co-coordinate method–of-execution designator on trade record q Establish protocol for receipt of daily exchange trade data q Complete software implementation and train Markit staff on daily operations q Ensure EGUS and e. GAINS rate and agreement mapping and posting q Redesign daily, monthly, and end-of-cycle reports to accommodate gross reporting and 3 rd party relationships q Create Learning Environment (LE) IDs, passwords, and administer LE testing (upon request) q Test month-end banking transmission to FIA and JPMC q Create training plan and test scenarios (Phases 1 -3) q Facilitate user training in London (June 10 -12) q Compile user guideline, procedures, manuals, and related documents q Establish DR procedures

What Is On Our To-Do List? Continued Markit q Train w/CCorp to assume daily operations q Create user log on page and system interface q Test receipt of exchange trade data q Compile user guideline, procedures, manuals, and related documents (system procedures) q Manage e. GAINS help desk post launch q Establish DR procedures

UPDATE: Third-Party Relationship, Executing Firm to Customer (FIA) EGUS allows participants to list the Executing Broker, Clearing Broker, Customer, and Trader in the give-up agreement. Additionally, participants provide FIA Tech with detailed banking instructions for automated month-end pay and collect processing. Executing Broker – the party executing customer orders on a futures exchange. Clearing Broker – the party maintaining accounts to which the executing broker gives-up trades. Customer – the party to whose account the given-up trades belong and shall reside. Trader – the party authorized to place orders with the executing broker on behalf of the customer. Working through their Clearing or Execution Firm, the third-party or customer (in order to facilitate payment to the executing firm through e. GAINS), must become an e. GAINS participant by completing the e. GAINS Processing Agreement and submitting their banking instructions to FIA Tech. Within the EGUS / e. GAINS third-party relationship, the executing broker has the ability to bill the customer and receive the execution fees through the system as opposed to invoicing the customer for payment outside of the e. GAINS system. Since rates and give-up fee information is proprietary, the executing brokers may hide the rate schedule from the clearing broker (since, in third-party relationships, the clearing broker is not part of the billing process).

UPDATE: Third-Party Relationship, Executing Firm to Customer (FIA) Continued Executing Firm Reports and Monies Set-Up and Flow EGUS: Bill To Customer; Hide Rates e. GAINS: Bill to Third Party; Ex Code - Customer completes Agreement - Suppresses fees and rate schedule from clearing firm view - Reports are distributed to customer not clearing firm Clearing Firm Customer Positions

UPDATE: Third Party Relationship, Executing Firm to Customer (FIA) Continued 1. • • Bill the customer and process the payment through e. GAINS: Customer completes the e. GAINS Processing Agreement Customer provides FIA Tech with detailed banking instructions EGUS: Bill To, Customer EGUS: Hide Rates e. GAINS: Designate the agreement as a Third Party Agreement (allows e. GAINS to facilitate payment from customer to Executing Firm) e. GAINS: Bill To Third Party e. GAINS: Add the Third Party’s carrying participant Exchange/Firm code or 2. • • • Bill the customer and process the payment outside of e. GAINS: Executing Firm completes the e. GAINS Processing Agreement EGUS: Bill To, Customer EGUS: Direct Bill = Y

FEEDBACK: A Format Checkpoint (Participants) Agreement, Statement of Intent, Banking Instructions ● What is the timeline for having the above items completed? ● ● ●

FEEDBACK: A Format Checkpoint (Participants) Continued Trade Processing • General statement or request for feedback (CCorp to the firms) relative to the end of day reports, data files… Participant Comments • Identification of trade types and method of execution will have a big impact on firms (response: work in process with exchanges, scheduling conference call with exchange technology contact). • Method of execution involves front end work for firms also. • How will reversals (trade date and T+1 reversing transactions) be handled in e. GAINS? • Create test scenarios to test same day and T+1 reversals • If Eurex sends an EFP, will e. GAINS charge a rate for it? • What happens if an exchange sends a trade for which there is no agreement? • When will the exchanges send data so that firms could test with e. GAINS and their internal systems? • Duration of testing is a concern - may not have sufficient time to test all functionality for parties. • Training Sessions (June 10 -12): What will be reviewed in the 3 hour sessions? Will there be a training manual? Can it be distributed now?

FEEDBACK: A Format Checkpoint (Participants) Continued Banking Participant Comments • Need to ensure all pertinent currencies are included for launch (Swiss Franc, Yen, etc. ). Need update with getting these currencies in e. GAINS for launch.

Test Schedule (CCorp) On-Site Training - London: June 10 -12 Due to the complexities of the EGUS to e. GAINS integration, firm testing will proceed in three phases (rates, trade processing, monies). Phase 1 (June 10 – 27) - Rates EGUS rates are electronic, pdf, or both Electronic Automatic upload. Once the firm’s EGUS Systems Administrator enables the EGUS to e. GAINS rate feed (EGUS: Maintain Party Permissions, Enable Rate Data Feed), electronically stored rates in EGUS will post to e. GAINS without firm intervention. Firms will be able to view the EGUS rate upload to e. GAINS online (through e. GAINS systems access), hard-copy (GNS reports), or through an ASCII text file download. Firms should review the e. GAINS and advise FIA of errors by June 2.

Test Schedule (CCorp) Continued Pdf Manual input (deadline June 27). Steps to add e. Rate schedules to an executed agreement w/pdf already attached: 1) Create the e. Rate and save to e. Rate Library 2) Go to executed agreement and click on agreement ID# 3) Click on the EDIT button in the accounts and rates box on the View and Manage screen 4) Scroll down to the “Attach Rate Schedules” box and select the e. Rate from you library 5) Click attach 6) Click “Save & Next” and you will see it was added to the agreement NOTE: The aforementioned has no impact on the EGUS agreement nor will it require counterparty review or acknowledgement.

Test Schedule (CCorp) Continued CCorp Test Scenarios EGUS Agreements EGUS Account Permutations (Customer and Trader) Executing / Clearing Accounts EGUS Rate Table Permutations e. GAINS Agreement Permutations Customer One One / One Many One / Many One Many / One Many / Many One Many

Test Schedule (CCorp) Continued Firm Questions 1. What is the Customer and Trader agreement type ratio (50/50)? One firm—majority of agreements were Standard Trader with Clearing Broker being billed 98% of the time. 2. To what extent do you have multiple execution accounts on one agreement? 3. To what extent do you have multiple clearing accounts on one agreement? 4. To what extent do you have multiple rate tables to one agreement? 5. In the event you use multiple rate tables for one agreement, are there product overlaps between rate tables? 6. To what extent will you participate in 3 rd party billing (your customer pays the executing firm through the e. GAINS banking module)? 7. Other permutations for consideration? Firms should assess their conditions and respond to above questions.

Test Schedule (CCorp) Continued Phase 2 (July 1 – August 21) Trade Processing and Monthly Trade Adjustments Production • Production trade files will be received daily beginning May 15 • We will provide test scripts for high-level testing (general scenarios) Firm Specific • Firm specific trades, rates, and relationship nuances should be tested • Firms enter trades into e. GAINS and/or supply trade files to CCorp for loading into e. GAINS • Firms should verify trade postings, system functionality (corrections, deletes, rejects), rates, calculations through e. GAINS online, hard-copy (GNS reports), or through an ASCII test file download

Test Schedule (CCorp) Continued Phase 3 (August 5 – August 25) Monthly Cash Adjustments and Banking • We will provide test scripts for high-level testing (general scenarios) • Enter month-end adjustments • Confirm debit and credit (gross) posting through e. GAINS online, hard-copy (GNS reports), or through an ASCII test file download

FEEDBACK: A Format Checkpoint (Participants) Continued Testing ● ● ●

FEEDBACK: A Format Checkpoint (Participants) Continued Systems ● ● ●

FEEDBACK: A Format Checkpoint (Participants) Continued Launch ● ● ●

FUTURE: Industry Enhancements (FIA) Association for Payment Clearing Services (APACS) and Faster Payments Service (FPS) APACS is the UK’s payments association. FPS is a banking initiative (UK only) to improve the speed of low value payments to near real-time (essentially as if two accounts were in the same bank). FPS shall support one-time payments, standing orders, corporate bulk payments, and return payments. The system, designed by APACS is comprised of a network of member institutions (banks) surrounding the core central system. The central system will handle the actual message switching in near real-time, as well as manage the settlement of accounts at the Bank of England. FPS shall be launched on 27 th May 2008 at which point the banks shall begin to roll out the service to their customers.

FUTURE: Industry Enhancements (Participants) Continued Participant Wish List Participant Comments • Add flag to indicate bill to party within EGUS. • Comment to participants: PLEASE review reports/communicate enhancements to end of day reports, data files, or web pages

FUTURE: Industry Enhancements (FIA) Continued Procedure for Adding (new) FX Settlements (FIA) New settlement currency requests should be directed to Mary Ann Burns at FIA Tech. Other Exchange Participants (FIA) Discussions are ongoing. Reducing the Credit Window (FIA) In the opening days of e. GAINS, funds will be held by FIA Tech for 60 business days. The number of days will drop as more users are added to the system. We anticipate dropping the float period to 20 days once the amount of money flowing through the system reaches projected levels.

Resource Links http: //www. futuresindustry. org/ • • • General – Timeline – Frequently Asked Questions (FAQs) On-Boarding – e. GAINS Processing Agreement – Statement of Intent CCorp – Data Layout Specifications – Report Library – Learning Environment – Test Trades Submission Spreadsheet – Test Plan: Phases 1 -3

Help Desk FIA Tech Joint effort between FIA Tech London and Washington. Details pending. CCorp Post launch, primary support provided by FIA Tech and Markit. CCorp will provide 2 nd level support to FIA Tech and Markit FIA EGUS and e. GAINS Support: Email: support@markit. com From 8 am to 6 pm CET: +31 20 502 5888 From 8 am to 6 pm GMT: +44 (0) 20 7260 2111 From 8 am to 6 pm Eastern Time: +1 (877) 7 -MARKIT If you cannot dial 877 number above, call +1 (914) 872 -2772 and ask for EGUS support

Contacts FIA Tech Robert Drew, Consultant, (b) 07812991191, rdrew@futuresindustry. org David Adam, Consultant, (b) 312. 786. 3821, dadam@futuresindustry. org Ron Metcoff, Treasury Consultant, (b) 215. 272. 6593, rmetcoff@futuresindustry. org Krystal Atha, Relations Manager, (b) 202. 466. 5460, katha@futuresindustry. org David Wilson, Technology Project Manager, (b) 202. 466. 5460, dwilson@futuresindustry. org Mary Ann Burns, Executive Vice President Industry Relations, (b) 202. 466. 5460, maburns@futuresindustry. org CCorp Marc Mac. Quarrie, Client Services and Support, (b) 312. 786. 5732, marc. macquarrie@clearingcorp. com James Woods, Vice President, Production Management Group, (b) 312. 786. 5715, james. woods@clearingcorp. com Markit Tony Murljacic, Director, Head of Trade Processing Connectivity, (b) 914. 872. 2905, tony. murljacic@markit. com

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